The 42-year-old recently signed a three-year deal with the Bavarians and will replace Jupp Heynckes as the Allianz Arena side's head coach at the end of the season, snubbing interest from a host of Premier League outfits.

"I have a lot of respect for his decision. Bayern are a bigger challenge for him than for example a team like Chelsea," Beckenbauer was quoted as saying by Bild.

"We do not have someone like Abramovich. We have to be spot on with our transfers.

"There's still room for improvement for Bayern under Guardiola. Constantly pressuring you opponent, quick counterattacks and finding the available player on the pitch. Dortmund are closer to Barcelona than we are in those areas."

Bayern currently sit atop of the Bundesliga table with 48 points from 19 games.